SolGold turns down $1.05 bn offer from Jiangxi Copper amid copper asset scramble

SolGold plc (LSE: SOLG) has firmly rejected a revised takeover proposal from Jiangxi Copper Company Limited, sending its shares soaring in London and New York trading as investors responded positively to the board’s strategic defiance. The rejected bid, which valued SolGold at approximately US$1.05 billion, marked Jiangxi Copper’s second attempt in a week to acquire the Ecuador-focused copper and gold developer. SolGold’s directors said the latest proposal undervalued the company and its assets, including its flagship Cascabel copper-gold project, and chose not to recommend it to shareholders.

SolGold’s stock surged by as much as 28.5 percent on the London Stock Exchange following the news, reflecting investor confidence in the miner’s long-term standalone valuation. The stock closed near 29.55 pence, which not only exceeded the proposed offer of 26 pence per share but also implied growing market sentiment that SolGold may either attract better offers or unlock greater value independently.

The timing of the bid is not coincidental. The rejection comes amid a renewed global scramble for high-grade copper assets, especially in regions such as South America, as electrification demand from electric vehicles, renewable energy infrastructure, and energy transition investments continues to surge. Analysts tracking the copper market believe strategic acquisitions are accelerating in part because of tightening global inventories and limited new greenfield discoveries, which have pushed miners to consolidate assets with established resource bases and permitting progress.

Why did SolGold reject Jiangxi Copper’s revised offer and what does it reveal about asset confidence?

SolGold’s board issued a clear rejection of the Jiangxi Copper proposal, noting that the bid significantly undervalued the company’s portfolio of assets and its long-term growth potential. The proposal, which came in the form of a non-binding cash offer for the entire issued and to-be-issued share capital of SolGold at a price of 26 pence per share, represented only a modest premium to recent trading levels. However, it failed to capture what the board described as the inherent value in its Cascabel project in northern Ecuador.

The rejection follows a similar unsolicited approach submitted by Jiangxi Copper on 23 November 2025, also turned down by the board. Both proposals are part of a growing trend of inbound interest from Chinese mining majors, reflecting Beijing’s broader effort to lock in access to future-facing metals, especially copper, which is seen as a critical input in decarbonization infrastructure.

The 26 pence per share proposal may have looked attractive in nominal terms, but many investors had previously speculated that any serious bid for SolGold would need to price in the full potential of Cascabel. The project has been positioned by SolGold management as one of the largest undeveloped copper-gold deposits in the world. It is also located in a jurisdiction that has seen increased geopolitical attention from both Chinese and Western players seeking to secure raw material supplies outside of Africa or politically sensitive zones.

Analysts believe SolGold’s rejection may be aimed at creating negotiating leverage. By publicly signaling that the company is not for sale at current levels, the board may be inviting a more competitive bid from Jiangxi Copper or possibly drawing other suitors such as BHP Group or Newmont Corporation back to the table. Both of those mining majors already hold substantial stakes in SolGold and have historically been seen as potential acquirers of Cascabel.

What makes the Cascabel copper project so central to SolGold’s valuation strategy?

At the heart of SolGold’s confidence lies the Cascabel project, a copper-gold porphyry system that has received significant exploration attention since its discovery. Located in northern Ecuador, Cascabel has been touted by industry watchers as a tier-one asset in the making. With estimated production of more than 200,000 tonnes of copper per year once operational, and reserves extending over two decades, the project is central to SolGold’s identity and valuation narrative.

Cascabel’s potential scale and resource richness have drawn comparisons to South America’s legacy copper deposits. However, it remains at a pre-development stage, meaning that significant capital expenditure, permitting hurdles, and construction timelines still lie ahead. As of the latest disclosures, SolGold has been in the process of advancing project engineering and securing financing options to support a final investment decision. The timeline for bringing Cascabel into production could stretch into the 2030s.

Despite these long lead times, SolGold’s management believes that retaining full ownership of the asset gives shareholders the best exposure to long-term copper upside. Rejecting an early-stage exit to a strategic buyer like Jiangxi Copper may be seen as an effort to preserve future optionality, particularly in a market where copper prices are widely expected to rise over the next decade due to structural supply deficits.

How are investors and institutions reacting to the rejected Jiangxi Copper bid?

Investor sentiment has been overwhelmingly positive in response to the takeover rejection. SolGold shares jumped significantly after the announcement, with volumes surging and interest returning to what had been a relatively quiet stock in recent months. Traders interpreted the board’s decision as a show of strength rather than weakness, signaling that SolGold expects to deliver greater value either through project execution or more attractive strategic alternatives.

Institutional investors such as BHP Group and Newmont Corporation, both of which have board-level influence and substantial shareholdings in SolGold, are expected to play a critical role in shaping the next phase of the company’s future. While neither firm has made public comments regarding the Jiangxi Copper bids, industry sources suggest that internal discussions around SolGold’s strategic direction are active and ongoing.

Jiangxi Copper, meanwhile, now faces a December 26 deadline under UK takeover rules to either announce a firm intention to make a binding offer or withdraw. If the latter occurs, UK rules would prevent Jiangxi from returning with another bid for six months, barring specific exemptions.

Could a bidding war for SolGold still materialize before the December deadline?

The possibility of a higher bid from Jiangxi Copper or the entrance of a new bidder remains very much on the table. Given that SolGold has now rejected two non-binding proposals in close succession, the market is likely to assume that its board would only engage in further negotiations if a significant valuation uplift were on offer.

BHP Group, which holds just under 15 percent of SolGold, has previously indicated interest in expanding its copper portfolio through high-impact acquisitions. Similarly, Newmont Corporation has shown growing appetite for global copper diversification, especially following its own internal restructuring and capital reallocation following the Newcrest acquisition. Both miners may view Cascabel as a viable long-term bet if the valuation reset meets internal return thresholds.

In the short term, the focus will remain on Jiangxi Copper’s next move. If it fails to table a binding offer by the end-of-year deadline, SolGold may pivot toward funding alternatives, including offtake-linked project financing, joint venture partnerships, or a possible minority asset sale to unlock development capital while retaining operational control.

For now, SolGold appears to be holding out for better terms while positioning itself as a key independent copper player in a tightening global market. Investors seem to agree, at least for the moment.

What are the key takeaways from SolGold’s rejection of Jiangxi Copper’s $1.05 billion bid?

• SolGold plc rejected a second, higher non-binding takeover offer from Jiangxi Copper Company Limited valuing the miner at approximately US$1.05 billion or 26 pence per share.

• The board unanimously deemed the bid undervalued SolGold’s long-term potential, particularly its flagship Cascabel copper-gold project in northern Ecuador.

• Shares of SolGold surged up to 28.5 percent after the announcement, reflecting investor optimism that either a better offer could emerge or that the company can unlock more value independently.

• Jiangxi Copper now has until 26 December 2025 to make a formal binding offer or walk away under UK takeover rules.

• Cascabel is viewed by analysts as a potentially tier-one copper asset, but development remains years away and will require substantial funding and regulatory navigation.

• BHP Group and Newmont Corporation, both significant shareholders in SolGold, have been mentioned in prior discussions as potential acquirers or deal influencers.

• Analysts believe the company’s move signals confidence in future copper pricing and project economics, even as it takes on the risks associated with solo execution.

• A bidding war or strategic JV remains possible, especially amid rising global copper demand and constrained new supply.

• SolGold is expected to explore financing alternatives if no firm offer materializes, including partial asset sales or offtake-backed funding structures.

• The market interpreted the rejection as a sign of strength, reinforcing SolGold’s role as a key copper asset in the energy transition era.